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Andhra Pradesh actions may disinterest developers and investors to plunge in renewable segment

Andhra Pradesh move to renegotiate solar and wind PPA has dismayed developers and disinterested investors to capitalize further in renewable segment. Developers further agitate that state load dispatch centres are curtailing solar and wind power even after High Court has directed state not to curtail solar and wind power on any grounds. Curtailment of power by state have caused a huge loss in revenue to developers and investors in tune of Rs 1,400 crores.

In a suit between Andhra Pradesh state and developers on renegotiation of PPA, High Court directed state not to curtail renewable power and attributed the power supply from solar and wind plants as "must run plant". Developers contend that SLDC are violating court's order of not curtailing solar and wind power on any grounds, such deterring action by state has further caused 20-25% of solar power and 50-60% of wind power which is being curtailed. Though Andhra Pradesh has started disbursing dues in a phased manner, but such operational hindrance and negligence will dwindle investments scenario of the renewable power generation of state.